India, ASX breakout

India’s Sensex is retracing to test its new support level after breaking resistance at 20500 Friday, signaling a primary advance to 22000*. A 13-week Twiggs Money Flow trough above zero indicates buying pressure. Reversal below 19500 is unlikely, but would warn of another test of primary support at 18000.

Sensex

* Target calculation: 20000 + ( 20000 – 18000 ) = 22000

Japan’s Nikkei 225 is testing the rising trendline on its weekly chart. Penetration would warn that momentum is slowing, while breach of 13000 would signal a primary down-trend. Breakout above 15000 is as likely, despite the earlier bearish divergence on 13-week Twiggs Money Flow, and would signal an advance to 17500*.

Nikkei 225

* Target calculation: 15000 + ( 15000 – 12500 ) = 17500

China’s Shanghai Composite is rallying to test resistance — and the upper trend channel — at 2330. The 21-day Twiggs Money Flow trough above zero indicates growing buying pressure. Reversal below 2150 is unlikely, but would indicate another test of primary support at 1950.

Shanghai Composite Index

Hong Kong’s Hang Seng is testing resistance at 23500 on the weekly chart. Breakout would signal a primary advance to 25500*; follow-through above 24000 would confirm. Rising 13-week Twiggs Money Flow indicates medium-term buying pressure. Respect of 23000 is unlikely, but would suggest another test of support at 21500.

Hang Seng Index

* Target calculation: 23500 + ( 23500 – 21500 ) = 25500

Singapore’s Straits Times Index appears to be preparing for another test of long-term resistance at 3300. Breakout would signal a primary advance to 3600*. A 13-week Twiggs Momentum peak below zero would warn of a primary down-trend, but sentiment is bullish across a wide range of markets and upward breakout is as likely.

Straits Times Index

* Target calculation: 3300 + ( 3300 – 3000 ) = 3600

The ASX 200 recovered above resistance at the May high of 5250, the false break suggesting a bear trap. Follow-through above 5300 would confirm an advance to 5850*. Reversal below 5100 is unlikely, but would warn of a correction.

ASX 200

* Target calculation: 5250 + ( 5250 – 4650 ) = 5850

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